The EUR/CHF currency pair on Friday pulled back off the current weekly highs of about 1.0795 to trade at around 1.0777 after the ECB council meeting. The pair appears to be attempting a rebound following this month’s pullback. 

It is now trading just above the 50% fib level on the way down. Friday’s outback prevented it from crossing to overbought levels of the 14-hour RSI. It is now pinned between the 100-hour and the 200-hour SMA lines in the 60-min chart.

EUR/CHF Fundamentals Overview

From a fundamental perspective, the EUR/CHF currency pair is trading at the back of a relatively busy period in the EU market. On Thursday, the ECB made the decision to keep the base interest rate at 0.0% while the deposit rate was kept unchanged at -0.5%. The ECB also made a significant milestone after finally agreeing on a EUR 1.1 trillion budget and EUR 750 billion coronavirus recovery fund. Poland and Holand had previously declined to sign on the deal citing new rule changes. 

Earlier in the week, the EU’s seasonally adjusted gross domestic product for Q3 missed the (QoQ) expectation of 12.6% with a change of 12.5%. The (YoY) equivalent beat the expected change of -4.4% with a change of -4.3%. The employment change for the period beat the expected (QoQ) change of -2.8% with a change of 1%. The (YoY) equivalent also outperformed -2.9% with -2.3%. In Switzerland, the seasonally-adjusted unemployment rate for November matched the expectation of 3.4%.

EUR/CHF Technical Analysis (the 60-min Chart)

Technically, the EUR/CHF currency pair appears to have recently bounced off 3-week lows to surge towards 1.0796. The pair has since pulled back again to move closer to the 50% fib level. It is also closer to overbought levels in the 14-hour RSI.

The bulls will be targeting short-term profits at around 38.20% and 23.60% fib levels at 1.0796  and 1.0825, respectively. On the other hand, the bears will look to pounce for profits at around 61.80% and 76.40% fib levels at 1.0745 and 1.0719, respectively.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair appears to be trading within a gently ascending channel that comes off a bigger descending channel. This indicates an attempt by the bulls to trigger a market reversal.

They will be looking to ride the current bull-run towards 1.0892 or higher to 1.1012. On the other hand, the bears will be looking to pounce on pullback profits at around 1.0676 or lower at 1.0538.